Definition

Relocation

What happens when aggression exceeds available liquidity and price shifts to find the next available orders.

Full Explanation

Relocation is the outcome when aggression wins. Aggression arrives at a price, consumes the available liquidity, and the remaining aggression has nowhere to fill — so it moves to the next price where orders exist. This shift is what appears on the chart as price moving. Relocation continues until all incoming aggression has been absorbed. The distance price relocates depends on how deep the liquidity was and how large the aggression was. A large wave of aggression meeting thin liquidity produces fast, extended relocation. Large aggression meeting deep liquidity produces little or no relocation.

In the Book 1 chapter

Chapter 3 · The Mechanics

Absorption and Relocation

Here’s a question that sounds simple but most traders have never actually answered: why does price move?

From the Blog 1 post

Why "Buyers vs. Sellers" Is the Wrong Frame

Every transaction has both a buyer and a seller. That's not insight — it's arithmetic. The question that actually matters is different, and until you're asking it, you're working with the wrong map.

Videos 1 video

Why does price actually move?

When aggressive market orders arrive at a price, exactly one of two things happens: the resting liquidity at that price absorbs them and price stays put, or the liquidity is insufficient and price relocates to the next available price.